Inside Milk
The price of phosphate rights is reduced by more than 10 euros
The trade in phosphate rights is described as quiet, with buyers taking a wait-and-see attitude and hinting at lower prices. At what price level is trading done?
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The phosphate rights price went up past 3 weeks down in small steps. This week the price decline continues and a significant correction is taking place. It is a wait-and-see market, with sellers repeatedly bidding back.
Rapid decline
The DCA quotation for phosphate rights has fallen this week by €11,50 to €212 per kilo. The bandwidth is roughly between €210 and €215 per kilo, which means that the market is thin. This is partly due to the holiday period.
Also the drought is a concern for many dairy farmers. Roughage extraction is endangered in many places; This only makes the trade-off between purchasing additional phosphate rights or removing livestock even greater. If the month of August brings the necessary rainfall, the grass and corn harvest may still be better than expected. Especially because stocks from previous years are ample in many places.
| DCA listing phosphate rights | Price range (week 30) | Number of problems | Average |
| €212 (-€11,50) | € 206 - € 215 | 5 | €212 |
| Explanation DCA Markets: The market is quiet, with a downward trend. The question now is whether a bottom has been reached or whether the decline will continue. Opinions in the market differ somewhat on this. |
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